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MOLTEN Fed

The MOLTEN Fed mechanism is designed to incentivize and support the Molten Network ecosystem through community-driven decisions on token minting and allocation. This ensures that the ecosystem remains vibrant, well-funded, and aligned with the community’s interests.

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Bimonthly Epochs and Community Voting

Every two months, holders of the MOLTEN token participate in voting to determine the amount of MOLTEN to be minted into circulation and how it will be used for various incentives. This democratic process empowers the community to have a direct impact on the ecosystem’s growth and sustainability.

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Key Points

  • Minting and Allocation: During each bimonthly epoch, MOLTEN holders vote on how much MOLTEN should be minted and allocated for different purposes such as trading incentives, LP incentives, liquidity incentives, grants, marketing, team funds, etc.
  • Discussion and Decision: Discussions and temperature checks are conducted on our Discord in the dedicated discussion thread. Community members propose ideas, discuss potential allocations, and build consensus.
  • Inflation Control: The community has the power to vote for no inflation if they believe that no additional MOLTEN needs to be minted for that period. This flexibility allows for dynamic and responsive management of the token supply.

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Ecosystem Incentives

MOLTEN is used to incentivize various activities and contributions within the ecosystem. These incentives help drive adoption, liquidity, and engagement across the network.

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Examples of Incentive Allocations

  • Trading Incentives: Rewards for active traders on the network.
  • LP Incentives: Incentives for liquidity providers to ensure sufficient liquidity for trading pairs.
  • Grants: Funding for innovative projects and development initiatives within the ecosystem.
  • Marketing: Budget for promoting the Molten Network and attracting new users.
  • Team Funds: Allocation for team development and operational costs.

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Deflationary Mechanisms

To maintain a healthy token economy, certain protocols like UniDex utilize 50% of their fees earned to buy back and burn MOLTEN tokens. This buyback and burn mechanism helps counteract inflation and ensures a sustainable token supply.

  • Inflation Control: By balancing the minting of new tokens with the buyback and burn mechanism, the overall goal is to achieve a deflationary token model.
  • Incentive Program Return: The aim is to ensure that the benefits of incentives outweigh the amount of new tokens minted, leading to a net positive impact on the token’s value.

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Community Participation

Every MOLTEN holder has a voice in the ecosystem. By participating in the voting process, holders can influence the direction and priorities of the Molten Network. This inclusive approach fosters a strong community and ensures that the network evolves in a way that benefits all stakeholders.

Join our Discord to participate in discussions, vote on proposals, and contribute to the future of the Molten Network.

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